Mainstream Renewable Power and Aker Offshore Wind have signed a merger agreement with a view to creating a “global renewable energy major.”
The two announced the proposal on Tuesday, as part of a deal which would see the Oslo-listed industrial investor’s offshore wind division integrated with the Mainstream group.
Aker Horizons (OSLO: AKH), which oversees the group’s green investments including wind, hydrogen and carbon capture divisions, closed a €900 million deal to acquire a majority stake in Mainstream last year, while partner Mitsui & Co later took a 27.5% equity share in the venture in March 2022.
The new merger proposal would see Aker Horizons merge the two subsidiaries to create “a stronger renewable company” with a 27-gigawatt (GW) portfolio spanning solar, onshore wind and bottom-fixed and floating offshore wind projects.
On completion of the transaction, Aker Horizons’ ownership in Mainstream will be approximately 58.6%.
“The strong industrial logic for combining Aker Offshore Wind and Mainstream includes complementary footprint and capabilities, increased scale, and improved access to financing,” explained Mainstream chief executive Mary Quaney.
“Combining Aker Offshore Wind’s strong technical and engineering capabilities, and early mover position in floating offshore wind, with Mainstream’s proven project development methodology, execution track record and global presence unlocks new opportunities worldwide.”
Mainstream has also appointed a new head of offshore wind – Tove Røskaft – who will report to Ms Quaney.
During her 25-year career at the Aker group, Røskaft has held a range of leadership positions across offshore products and operations as well as corporate management, most recently as chief operating officer of Aker Offshore Wind.
“The consolidation of Aker Horizons’ interests in renewable energy will accelerate Mainstream’s transformation into a global renewable energy major with leading floating and fixed offshore wind capabilities,” added Aker Horizons CEO and Mainstream chairman Kristian Røkke.
“Accelerating the deployment of renewable energy including deep-water offshore wind is essential to reaching Net Zero in 2050. According to IEA estimates, annual additions of solar PV and wind power in excess of 1,000 gigawatts are required by 2030. Mainstream is Aker Horizons’ platform to drive the transition toward a clean energy sector, with ongoing projects on five continents.”
The group also pointed to the rapid growth projected within the floating wind market as a major opportunity.
Mainstream said its offshore business would continue to develop existing projects for fixed and floating wind in markets like Norway, Sweden, Japan, South Korea, Vietnam, Ireland, the UK and the US, while also exploring new markets.
An extraordinary general meeting will be held in Aker Mainstream Renewables on 15 July to approve the transaction, with a view to closing the deal in August 2022.
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